PayPal stock cut at Edward Jones removed from Focus List after results
Published 14:33 PM Wed May 10th ,2023
Edward Jones analysts downgraded PayPal (NASDAQ:PYPL) shares to Hold from Buy after “weaker quarterly results.” The analysts also removed it from Edward Jones' ‘Stock Focus List'. 'PayPal has embraced a strategy shift focusing on its largest accounts that drive a majority of payments volume across the platform. While this strategy has led to consistent payment-volume growth other measures have deteriorated for the company” they wrote in a note. The analysts highlighted the new accounts “have actually shrunk” while profit per transaction fell despite the signs of stabilization it showed in prior quarters. They blame this deterioration on the slower growth of PayPal's own brands amid higher competition. “We think shares reflect our reduced growth outlook and are appropriately valued” they concluded. Credit Suisse analysts also lowered their recommendation on PYPL stock yesterday in the aftermath of the latest earnings report. PayPal shares fell 12.7% on Wednesday.